In the modern world, school truly a great thing. Unlike long in the past, where children would have to rely on their families and local people to teach them, they can have their entire education catered for. This has helped society to grow to mind boggling proportions. But, of course, schools do have their downsides. Unfortunately, several areas aren’t covered during most children’s education, and one of them is particularly important; finance. A lot of people leave school with no real idea of how they should manage their money. So, to help you out with this, this post will be going through some of the key areas anyone should understand before they leave school. Now, you just have to teach it to your children.
- Saving And Investment
Being able to budget properly and save money is more important in the modern world than it ever has been. Most people start out their career in an entry-level role which doesn’t pay very much. With limited income, it’s very hard to make sure things like rent, bills, and food is all covered. Along with this, once they start earning enough, they should have a basic understanding of investment. This will give them a very good starting point when it comes to their finances.
Nearly no school teaches their students about taxation unless you take an accountancy course of some sort. But, this area can be very important. When making investments overseas or running a business, they may need to understand overseas disclosure to make their payments. Without this, they might have to deal with huge fines. Along with this, in most places, your child will be required to pay income tax for the money they earn. Whether this is taken automatically or they have to declare it, it’s important that they know why they pay it.
Borrowing money is one of the easiest ways to get into a bad financial position. Most people end up relying on loans when they are careless with money. So, hopefully, you will have taught your kids well enough to avoid this. But, some loans aren’t bad, and are, in fact, completely necessary in normal life. A good example of this is a mortgage. This is the type of loan people use to buy a home and can be the perfect way for someone to invest in their life. Your children should have a good idea of the different kinds of loans available, as well as when it alright to use them.
A lot of people understand the core concept of bankruptcy, but don’t understand exactly what it means. A person declares bankrupt when they have to resolve debts or other unavoidable expenses, but don’t have any means to get the money to pay for it. Bankruptcy usually lasts around a year. During this time, you will have to use your non-essential assets and excess income to pay off your debt at a rate you can afford. Avoiding bankruptcy altogether is anyone’s best option. But, it’s important for a young person to understand that it can also provide relief if they are ever in trouble.
- The Law
The law dictates a lot about the money you spend. It limits what you can buy, where you can buy things, and even how much you can spend. Along with this, the law also governs how money is moved around, stored, and invested, making it critical that your child has a good understanding of the law surrounding their money. Not a lot of people consider the law when they’re dealing with money. But, breaking financial laws can have huge consequences, so it’s worth making sure your child is aware.
- The Support They Can Get
No one is left entirely on their own when it comes to finances. In fact, in most places, there are loads of different kinds of help you can get. Most banks are happy to help their customers for free, as they are interested in keeping your money safe. This is a great place to start if your child ever needs support. Along with this, the internet provides a great place to find advice and learn new things about money. Blogs and forums can be some of the best resources you have when you’re working with money. So, it’s worth teaching your child to use them.
Hopefully, this post will give you a good idea of the range of topics you should aim to teach your child about. This knowledge can be invaluable to a child when they’re first starting out as an adult. So, it’s worth giving it to them as soon as you can.